What Types of Trusts are Available in Utah?

In Utah, there are many different types of trusts that can be used when estate planning. After deciding to create a trust, you will first have to determine which type of trust to create. When determining which type of trust you want, it is critical to consider your goals for the trust. The needs of your beneficiaries, or those who will benefit from the trust, are often of key importance when determining which type of trust you need. Below, our Utah estate planning attorney explains the different types of trusts you may want to establish.

Testamentary Trusts

Testamentary trusts are established through your will or other estate planning documents. These types of trusts only become effective upon your death. After the probate court oversees the administration of the estate, the trustee will then distribute the property within the testamentary trust, created by the will, to the beneficiaries. After the will has come into effect and the testamentary trust is established, the trust becomes irrevocable, meaning its terms cannot be changed.

Revocable Trusts

A revocable trust is a flexible estate planning tool that allows you, as the grantor, to maintain control over your assets during your lifetime. You can update, modify, or even revoke the trust at any time to reflect changes in your circumstances or wishes. This flexibility ensures that your assets are managed and ultimately distributed according to your intentions. Upon your passing, the trust becomes irrevocable, providing a smooth and efficient mechanism for transferring your assets to your beneficiaries.

Irrevocable Trusts 

Contrary to revocable trusts, irrevocable trusts cannot be modified during your lifetime. Due to this, it is recommended that you only establish an irrevocable trust if you are entirely certain about a matter. After property is placed into an irrevocable trust, it is permanently the property of the trust and must be used according to the terms of the document.

While irrevocable trusts cannot be changed, they do still have many benefits. For example, after property is transferred to a trust, it becomes the property of the trust and cannot be seized by creditors.

Charitable Trusts

There are a variety of trusts if you wish to leave property to charity after your passing. Options include charitable lead trusts and charitable remainder trusts. Each type of trust differs based on when and how the property is transferred, as well as the type of assets placed into the trust, allowing you to structure your charitable giving in a way that best aligns with your goals and financial planning

Special Needs Trusts

Dependents with disabilities are often unable to manage their own affairs, or they need help managing them. In these instances, a special needs trust can ensure that the dependent is cared for properly after you pass away, and that any property you leave them does not interfere with the government benefits they receive that may be dependent on a person’s income or resources.

Our Estate Planning Attorney in Utah Can Help You Determine the Right Trust for You

Trusts have many benefits but knowing which one is right for you is not always easy. At AGS Law, our Utah estate planning attorney can advise on the different types of trusts and help you determine which one is right for your situation so you and your family are protected. Call us today at 801-477-6144 or contact us online to schedule a consultation and to get the legal help you need.